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Excel Glasses: rights issue to reshape debt

Listed Indian glass firm Excel Glasses is planning a rights issue aimed at reducing some of its high-cost debt.
According to Mr B.G. Agarwal, company vice-president, Excel, which has a paid-up capita…

Listed Indian glass firm Excel Glasses is planning a rights issue aimed at reducing some of its high-cost debt. According to Mr B.G. Agarwal, company vice-president, Excel, which has a paid-up capital of Rs 5 crore, expects to raise another Rs 5 crore through the issue. The rights ratio is five new shares for every four held and the issue is expected to open later this spring. As part of its expansion plan, the company, located in the silica-rich Alappuzha district, intends to invest Rs 2-3 crore in setting up a new glass forming line. Once this is done, the capacity utilisation is expected to increase from a current level of 80-85% to around 110%. “But the development plan can be feasible only if the 24% entry-tax on furnace oil is withdrawn forthwith. We are awaiting a favourable response from the State Government,” said Agarwal.

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